- Align KPIs with project objectives
- Choose relevant and meaningful KPIs
- Balance leading and lagging KPIs
- Define clear and realistic targets
- Review and update KPIs regularly
1. Align KPIs with project objectives
The first step to identify the right KPIs for your project control plan is to align them with your project objectives. Your project objectives are the specific, measurable, achievable, relevant, and time-bound (SMART) outcomes that you want to accomplish with your project. Your KPIs should directly relate to your project objectives and show how you are progressing towards them. For example, if your project objective is to increase customer satisfaction by 10% in six months, your KPI could be the customer satisfaction score (CSS) measured by a survey every month.
2. Choose relevant and meaningful KPIs
The second step to identify the right KPIs for your project control plan is to choose relevant and meaningful KPIs. Relevant KPIs are those that reflect the most important aspects of your project performance and help you make informed decisions. Meaningful KPIs are those that provide clear and actionable insights into your project performance and help you improve your processes and outcomes. For example, if your project is a software development project, relevant and meaningful KPIs could be the number of bugs fixed, the code quality, the user feedback, and the delivery time.
3. Balance leading and lagging KPIs
The third step to identify the right KPIs for your project control plan is to balance leading and lagging KPIs. Leading KPIs are those that indicate the future performance of your project and help you predict and prevent potential issues. Lagging KPIs are those that reflect the past performance of your project and help you evaluate and report the results. For example, if your project is a marketing campaign, leading KPIs could be the number of leads generated, the conversion rate, and the cost per lead. Lagging KPIs could be the revenue generated, the return on investment, and the customer retention rate.
4. Define clear and realistic targets
The fourth step to identify the right KPIs for your project control plan is to define clear and realistic targets. Targets are the specific values or ranges that you want to achieve or maintain for your KPIs. They help you set expectations, monitor performance, and identify deviations. Targets should be clear and realistic, meaning that they should be easy to understand, communicate, and measure, and that they should be attainable, challenging, and relevant. For example, if your KPI is the delivery time of your project, your target could be to complete the project within 90 days with a tolerance of 10%.
5. Review and update KPIs regularly
The fifth step to identify the right KPIs for your project control plan is to review and update them regularly. Reviewing your KPIs regularly helps you track and analyze your project performance, identify trends and patterns, and detect and resolve issues. Updating your KPIs regularly helps you adapt to changing circumstances, expectations, and feedback, and ensure that your KPIs remain relevant and meaningful. For example, if your project scope, schedule, or budget changes, you may need to adjust your KPIs accordingly.
By following these steps, you can identify the right KPIs for your project control plan and ensure that you measure and manage your project performance effectively. KPIs are powerful tools that can help you achieve your project objectives and goals, and deliver value to your stakeholders.
SOURCE: https://www.linkedin.com/advice/1/how-can-you-identify-key-performance-indicators-isutc
